2 Manager 1: Strategic & Business PlanningAbout the PresenterAlan Kennedy B.A. LLB. CMCAlan is a partner with Gibson Kennedy & Company, a Toronto consulting firm offering Canadian clients strategy counsel and competitive research services since Gibson Kennedy is the authorized correspondent in Canada for Kaiser Associates Inc., a Washington-based consultancy offering global competitive research services to North American based clients. Alan’s practice focuses exclusively on matters of strategy, risk, and capital projects planning and communication using The Alpha Strategies model he pioneered.Alan has been teaching strategy for the Schulich Executive Education Centre since His principal course is Strategic Management, a three day course on Situation Analysis, Strategic Planning, and Business Planning. In addition to being a member of the faculty for Management I, Alan also teaches in the Insurance Industry Leadership Program, a one week program for insurance industry executives. Alan is a frequent speaker on matters of strategy. Alan’s book, The Alpha Strategies – Understanding Strategy, Risk, and Values in Any Organization was published in February is now available at all online retailers and for free in pdf format atAlan is a Honor Roll member of the Canadian Association of Management Consultants. Alan received his degrees from Dalhousie University and served as Senior Vice President & General Counsel for both Oxford Development Group and Campeau Corporation and as a member of the Board of Directors for both companies.Manager 1: Strategic & Business Planning2

5 Module One A Brief Introduction to Strategy & its HistoryManager 1: Strategic & Business Planning5

6 The Issues in StrategySource: Robert F. Felton and Pamela Keenan Fritz, The View from the BoardroomMcKinsey Quarterly 2005 Special Edition: Value and PerformanceManager 1: Strategic & Business Planning

7 Manager 1: Strategic & Business PlanningJune 4, 2013A majority of leaders (64 percent) said the biggest frustration for managers is having too many conflicting priorities.Most executives (54 percent) said they do not believe that their company’s strategy will lead to success.Most (53 percent) could not say their strategy is understood by employees and customers.Only a third (33 percent) said they feel the company’s core capabilities fully support the company’s strategy.Only 21 percent could say all of their businesses leverage their core capabilities.Manager 1: Strategic & Business Planning

8 “Strategy is a description of a chosen course of action”Strategy Definition“Strategy is a description of a chosen course of action”“Our long term strategy is to be around for the long term. Our short term strategy is to not do anything that would screw-up our long term strategy”Stanfield’s, The Underwear Company Truro, Nova ScotiaManager 1: Strategic & Business Planning

9 A Competitive Researcher’s Perspective on Strategy- 8 strategies are common to all organizations- 3 types of strategy are common to all organizations- 1 strategy is the organization’s dominant strategyManager 1: Strategic & Business Planning

10 8 strategies are the source of all subsequent implementation strategy and organization design10Manager 1: Strategic & Business Planning1010

12 The 8 Strategy DefinitionsBusiness Definition /MandateFocus on positioning the business / on interpreting the mandate parametersRiskFocus on the unacceptable and ways to manage itGrowthFocus on type and rate of growthFinancial ManagementFocus on sourcing, allocation, and management of capital and revenuesR&D / TechnologyFocus on the creation and/or use of intellectual capital / technologyOrganization MgmtFocus on sourcing, allocation, and management of personnelMarketing / CommunicationsFocus on identifying and capturing customers and clients (i.e marketing through to sales)Service Delivery / Production / ManufacturingFocus on fulfilling the marketing promise of value / relevanceManager 1: Strategic & Business Planning

17 Manager 1: Strategic & Business Planning3 types of strategy are common to all organizationsInfluencersare the three strategies which most closely guide and constrain implementation of the Alpha and the remaining four strategies, the EnablersAlphais the one strategy which leads the organization and sets its character.e.g. Nike is MarketingEnablersare the remaining strategiesManager 1: Strategic & Business Planning

20 Blackberry The Alphas Blackberry Business DefinitionTo be the global leader in wireless data communicationsRiskTo protect our intellectual property and to protect network security and integrityGrowthTo focus on expanding our customer and subscriber base through marketing efforts, strategic alliances, and acquisitionsFinancial ManagementTo access capital markets through TSX / NASDAQ listingsTechnologyTo focus research on broad market applications for products derived from the existing technology base.Organization MgmtTo use the strength of market position and value proposition to enable HR “pull” potential employees and to leverage proximity and relationship with University of WaterlooMarketingTo encourage the adoption of our platform by wireless network service providers globally and their customers, and to focus on licensing components of the BlackBerry platform to key handset and service vendorsManufacturingTo deliver wireless data security and network reliabilityManager 1: Strategic & Business Planning20

22 Manager 1: Strategic & Business PlanningThe AlphasTarion Strategic PlanMandateAdministration of the ONHWP Act.RiskUse of insurance industry practices and regulatory authority to manage risks to new homebuyersGrowthRise and fall with the new home building industry cyclesFinancialUse of insurance industry capital reserving practices; revenues from fees from sale of warranties and from builder licensingTechnologyEnable management productivity; e.g. call center, web-based servicesOrganizationRegulator decisions are isolated from interference by the Board or the Insurance functionMarketingTo educate new home buyers and home buildersService DeliveryTo deflect risk away from the program onto buildersManager 1: Strategic & Business Planning22

24 The One-Page Strategic PlanThe 8 StrategiesStrategy DescriptionAlphaInfluencerEnablerBusiness Definition /MandateHow is the organization positioned?What is the mandate?-RiskHow are risks identified and managed ?GrowthHow does the organization grow?FinancialHow are the finances managed?R&D / TechnologyWhat is the focus of R&D / Technology ?OrganizationWhere are people sourced; how are responsibilities and authority delegated; what is the culture i.e. alpha?Marketing / CommunicationsHow does the organization identify and capture customers / the perception of value?Service Delivery / ProductionHow are products / services are produced?Manager 1: Strategic & Business Planning24

27 Stakeholder IdentificationStakeholder TypesActual Stakeholder NamesThe Authority GroupThose Stakeholders who approve the plan and authorize implementationThe Involve GroupStakeholders who should be involved because of the role they will play in implementationThe Inform GroupStakeholders who need to be told what to do so that their actions are consistent with implementationThe Consider GroupAny Stakeholders not falling in any of the above categories and who could have a response to implementationManager 1: Strategic & Business Planning

32 Canadian Military Use of Expectations Based PlanningSource:a.k.a. ExpectationsSee:Manager 1: Strategic & Business Planning

33 The 3 Levels of ExpectationsWhich level applies to you?RigidClear & Rigid Expectations Set Across all 8 StrategiesModerateExpectations not set for 3 or 4 the 8 StrategiesDo Your Own ThingUsually only 2 or 3 Expectations IdentifiedManager 1: Strategic & Business Planning33

36 Building the Business PlanYou have just been made the manager of a facility within your organization.Which expectations seem to be the most important achieving successand what would be your plan to meet those expectations?The 8 StrategiesExpectations imposed on the operatorBusiness DefinitionTo offer fast food services within a hospitalRiskTo comply with all mandated health and safety policies and proceduresGrowth- To grow the per capita spendFinancialTo follow mandated reporting requirementsTo achieve imposed margin expectationsTo make all required remittances to the VP Finance of the hospital on timeTechnology- To use mandated information systemsOrganizationTo maintain a staff of 25 – 30 to be able to run the location 24/7To develop a customer-centric teamTo hire and train employees to deliver to mandated service standardsTo comply with the Collective Bargaining Agreement at all timesMarketing- To follow all mandated promotionsService DeliveryTo be a 24 / 7 operationTo follow all mandated processes for service deliveryTo deliver to mandated quality standardsTo offer all mandated products and servicesManager 1: Strategic & Business Planning36

38 Building the Action Plan – a Visual6.Long TermShort Term4.FG3.2.5.DEBC1.TodayAStepsWhatHowWhoScheduleMetricsBudget1.A to B-2.B to C3.C to D4.D to E5.E to F6.F to GManager 1: Strategic & Business Planning38